The US Federal Reserve Chairman warns that tariffs can slow down and increase inflation, and Wall Streets are rapidly reducing.
US President Donald Trump made an unexpected intervention in negotiations and promoted “great progress” in trade negotiations with Japan.
Trump presented his opinion on Wednesday after making a surprising decision on the negotiations between his executive and Washington DC officials.
“I am honored to meet a Japanese delegation on trade. Big progress!” Trump wrote about truth and socialism after a speech, including US Treasury Minister, Howard Lutnick, and Rios Akaza and Economic Revitalization.
Akazawa said that after Trump, after the meeting, he wanted to reach a transaction before the end of the suspension of the 90 -day “mutual” tariff.
Japanese Prime Minister Shigeru Ishiba said negotiations would not be easy. But the early conversation round said, “We created the foundation for the next stage.”
Like dozens of other US trade partners, Japan has received 10 %of the standard tariffs in addition to 25 %of the highest exports to East Asian countries.
Japan, the best security alliance in the United States and the fourth largest trade partner in the United States, faces 24 %of the “mutual” tariffs following Trump’s “Liberation Day” trade measures, and almost everything has been suspended until July 9.
Martin Schulz, the chief policy economist at Fujitsu in Tokyo, said, “The Japanese industry is closely integrated into the US economy, so everyone is very concerned about trade negotiations.”
“There is no winner in the trade war, but we are optimistic that we can also achieve reasonable results. Japan is the largest investor in the United States and is interested in more investments.”
Schulz said, “If both economy can maintain growth tracking, the US income can increase.
As Wall Street triggered more losses in Trump’s trade-in-Trump, the US-Japan conversation was held.
The benchmark S & P 500 dropped 2.24 % on Wednesday, while the technology with a lot of technology fell 3.07 %.
The loss warns that Trump’s steep tariffs could lose inflation at once due to weak growth, unemployment, and inflation, following the warning of Jerome Powell, chairman of the US Federal Reserve Bank.
In a speech with the Chicago Economic Club on Wednesday, Powell mentioned the US central bank’s twin goals for the largest employment and stable price of the US central bank, saying, “We can be in a challenging scenario where the double -mandtate goal is tense.
“If so, we will consider how far away the economy is from each goal and potentially different time horizons that are expected to be closed.”
Since Trump’s inauguration in January, US stocks have been on a roller coaster, alternating between sharp dip and big jumps in his tariffs.
Financial markets and companies are waiting for a signal that the US president can defeat or discard a lot of tariffs in exchange for concessions of US trading partners.
Trump administrative officials said more than 75 countries contacted them to start trade negotiations.
Since Wall Street’s recent losses, S & P 500 and NASDAQ have decreased by about 10 % and 15 %, respectively.
On Thursday, the Asian stock market began a better departure, with Japan’s benchmark Nikkei 225, Korea’s KOSPI and Hong Kong’s Hang Seng Index more than 0.5 % in early transactions, respectively.
